By contrast, through the Emissions Reduction Fund, the Government will support Australian businesses and households to lower their energy costs at the same time as reducing Australia's emissions.

Funds will be allocated flexibly over time according to the profile of projects contracted under the Emissions Reduction Fund. The Government will be able to write contracts up to the value of $2.55 billion over the forward estimates period. Payment will be made as abatement is achieved.

The Government has already introduced legislation to repeal the carbon tax, released a White Paper setting out the detailed design of the Emissions Reductions Fund and draft legislation to establish the arrangements for the Fund have now been released.

The Fund will also expand the Carbon Farming Initiative to enable emissions reductions across the entire economy to be credited beyond the land sector.

Work has already begun to identify and prioritise opportunities to reduce emissions and on methods businesses can use to identify reduction opportunities in their operations.